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The town was originally named Heatherwood, but the name was changed around 1911 in honour of Edson Joseph Chamberlin, vice-president of the Grand Trunk Pacific Railway. Local history maintains that Edson (Heatherwood) was built in its current location because it was the first level spot after Wolf Creek. (The land at Wolf Creek was quickly bought up after the announcement of plans to develop a town there, which rendered it uneconomical for the railway.) When Edson was declared the local rail centre, smaller communities such as Rosevear (abandoned), Wolf Creek, Carrot Creek and Niton Junction fell into a decline that continues today. In the 1950s, upgrading of Highway 16 caused a dramatic increase in private, commercial and industrial traffic. Today, the Yellowhead Highway carries some of the heaviest traffic flow in Alberta and has been officially declared the second Trans-Canada Highway. In the 1970s, a revitalized coal industry saw the Cardinal River Coal and Luscar Sterco mines launched in the area. The 1980s saw the development of Pelican Spruce Mills (now Weyerhaeuser Canada) and Sundance Forest Industries - two of Edson's major employers. The former hamlets of Glenwood and Grande Prairie Trail were annexed from Yellowhead County by the Town of Edson on 1 January 1984.[5][6]

The Town of Edson's 2012 municipal census counted a population of 8,646.[11]

In the 2011 Census, the Town of Edson had a population of 8,475 living in 3,386 of its 3,701 total dwellings, a 4.7% change from its 2006 population of 8,098. With a land area of 29.58 km2 (11.42 sq mi), it had a population density of 286.5/km2 (742.1/sq mi) in 2011.[2]

According to the 2006 federal census, Edson had a population of 8,098 living in 3,230 dwellings, a 6.8% increase from the 2001 federal census. The town has a land area of 29.54 km2 (11.41 sq mi) and a population density of 274.1/km2 (710/sq mi).[10]